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What is a Business Plan

Overview of an entire business in a summary form

Guideline for the general direction, strategies and
visions of a company
Reference point for tracking actual results or
achievements against plans
A means of having all participants at all levels in a
business pointing in the same direction
Who will use the business plan
ã Internal
Shareholders/owners
Top Management
Management
Staff
ã External
Strategic partners
Investors
Types of Business Plan
ã Strategic
For shareholders, investors or partners
3 to 5 year forecasts
Setting the overall direction of the company
ã Operational
For managers and staff
One year term, renewed every year
Gives the operational goals and tasks so for the
coming year
Fulfilment of the Strategic Plan
Strategic Business plan structure

ã Executive Summary
ã Market overview
ã Product or service line (existing and planned)
ã Sales and Marketing strategy
ã Development Plan
ã Company Structure (existing and planned)
ã Financial Plan
Operating Plan Structure
ã Executive Summary of the Strategic Plan
ã Summary of report on the results of the previous year
ã Sales and Marketing Plan for the coming year
ã Development Plan for the coming year
ã Financial Plan for the coming year
ã Detailed report by each business unit
Sales and Marekting
Production
Development
HR
Finance and Admin
Other depending on the company structure
Departmental Plans -1
ã Summary of given objectives for the
previous year
ã Report on the fulfilment of the objectives of
the previous year
ã Analysis of the plan versus actual
If targets not achieved why
Additional work done that was not in the plan
Departmental Plan - 2
ã Details of the objectives for the coming year
ã How do these objectives relate to the objectives
of other departments
ã Resources needed to fulfil the plans
Financial
Staff
ã Organisation chart of the department
Financial Forecasts
ã Profit and Loss
ã Balance Sheet
ã Cashflow forecast (liquidity plan)
ã Funds required
Setting Objectives in the Plan
ã Objectives and targets should conform to the
SMART rules
Specific
Measurable
Achievable
Realistic
Time
ã Planning cascade ± Strategic, Operational,
Monthly, Weekly.
ã Top Down ± Bottom Up